In light of increasing competition in the marketplace for transport services, the Federal Communications Commission today largely eliminated pricing regulation of lower-speed, legacy transport offered by price cap incumbent carriers as part of their commercially available business data services or as unbundled network elements
(3) Second, the Act enabled a regulation-intensive path to competition, whereby incumbents were required to offer unbundled network elements
("UNEs") at regulated rates.
Russell's professional experience includes serving as CEO and acting chief legal officer of the Competitive Telecommunications Association, which is the largest association representing competitive facilities-based carriers, providers using unbundled network elements
, global integrated communications companies, and their supplier partners.
This is known as the UNE (unbundled network elements
) approach (BARANES & BOURREAU, 2007; DIPPON & WARE, 2010; GABELMANN, 2001; OECD, 2003; SUTHERLAND, 2007).
FCC has also noted that, where competitors can lease unbundled network elements
from incumbent providers, there may be less incentive for competitors to invest in their own facilities.
* All incumbents were required to sell unbundled network elements
(such as rights to use the copper local loop or access to central office equipment) to entrants; the FCC and state utilities commissions would set the pricing methodology for unbundled network elements
In particular, experts assail the FCC for mandating that Incumbent Local-Exchange Carriers (ILECs) offer more than 400 Unbundled Network Elements
(UNEs) to Competitive Local-Exchange Carriers (CLECs) at wholesale rates, constraining ILECs to offer UNEs below cost.
The amount of competition produced depends on these prices because demand for unbundled network elements
(UNEs) slopes downward.
3 because the extent to which elements are required to be shared is related to the price at which unbundled network elements
are required to be made available.
Moreover, Bell competitors - such as AT&T, MCI, and Sprint to start-ups like McLeodUSA, Focal, and Allegiance - received another break as the court upheld rules that forced Bell companies to bundle network elements (Unbundled Network Elements
(UNE)), such as loops and switches, for lease to outside competitors.
That would induce entry, since new carriers could price their services below the level of incumbent carriers using the network elements of these incumbent carriers (see "Telric-BS," Professor Kahn's term to describe this below-cost pricing of unbundled network elements
that rivals the term "banana" in earthiness; p.
Spulber, The Tragedy of the Telecommons: Government Pricing of Unbundled Network Elements
Under the Telecommunications Act of 1996, 97 COLUM.